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Coca-Cola Stands Out as a Dividend Mainstay After Stock Pullback

A recent pullback leaves Coca-Cola offering roughly a 3% yield for income-focused buyers.

Overview

  • Coca-Cola has raised its dividend for 63 consecutive years and currently pays a quarterly dividend of $0.51, implying a forward yield near 3%.
  • The shares have retreated from a 52-week high of about $74, which recent coverage frames as a chance to add for long-term income investors.
  • The company’s capital-light model leans on bottling partners, with 85% of unit sales from concentrate syrup, supporting strong profitability.
  • Management has sustained high margins, with reports citing roughly 25% profit margin over the last year and a decade-long average operating margin above 26%.
  • Brand strength underpins pricing power that helped deliver about a 5% pricing benefit in Q2, supported by a global footprint in 200-plus countries and 30 billion-dollar brands, as well as a prominent Berkshire Hathaway stake.